Warren Buffett Has Held This Stock for Over 34 Years — Why He Will Never Sell

Warren Buffett - the Oracle of Omaha - is widely regarded as one of the greatest investors of all time.
Berkshire Hathaway Inc. (NYSE: BRK-A) has generated tens of thousands of percent over the years and consistently outperforms the market. Buffett bought the company in 1965 for just $8.3 million, and it's now valued at nearly $700 billion, a yield of about 10 million percent.
But one of Buffett's best all-time picks and longest-held positions is one you might not expect. Berkshire Hathaway began buying shares in Coca-Cola Co. (NYSE: KO) in 1988 and has steadily accumulated shares since then. Berkshire Hathaway now owns 400 million shares of Coca-Cola worth a whopping $22 billion, or about 8% of the company.
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By the time Buffett began buying the company in 1988, the stock was trading at a few dollars a share, leaving Berkshire Hathaway sitting on massive profits at the company. Coke also pays a dividend of 44 cents a quarter, giving it an additional nearly $1 billion in annual dividend earnings.
While you probably won't see these kinds of returns in Coca-Cola stock given its size, there are still value picks in the industry. For example, TruBrain is a startup that makes beverages and supplements that focus on cognitive health and is currently valued at a fraction of what Coke was when Buffett invested in the company in 1988.
Buffett likes Coca-Cola stocks for one reason -- the same reason he likes every company he invests in: value. This has two meanings. First, he's notorious for only investing when it's the right price and not a penny more. Coca-Cola stock was well priced back then with an interesting competitive edge. Coca-Cola owns nearly 50% of the US soft drink market. So as long as people keep drinking soft drinks, Coke will do well.
Read more: This startup is turning the entire venture capital world upside down
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Second, and perhaps more importantly, Coca-Cola creates value. Buffett likes "productive assets" because they produce cash and manufacture a product. The legendary investor has stayed away from things like cryptocurrency because it doesn't produce anything.
Buffett has previously mentioned Coca-Cola in that vein. He noted that Coca-Cola makes nearly 2 billion servings of drinks every day. So if Coke needs to make more profit, it could increase its drink prices by just 1 cent per serving and produce an additional $20 million a day.
Picks like these are Buffett's bread and butter, and he still loves Coca-Cola stock as much as he did the day he bought it. Coca-Cola has maintained its market dominance for decades, and as long as it stays that way, Buffett is unlikely to sell.
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